WTO Judges to Probe Legality of Argentina’s Import Curbs

By Jennifer M. Freedman -
Jan 28, 2013

The World Trade Organization agreed
to investigate Argentine import restrictions that the U.S., the
European Union and Japan say violate global trade rules.

The three governments separately challenged Argentina’s
policy of subjecting a growing number of products such as laptop
computers, chemicals, cat litter and tractors to licensing
regulations. These measures limit imports and discriminate
between foreign and domestic products, the governments said. The
WTO agreed today to set up a single panel to probe the U.S., EU
and Japanese complaints.

Argentina also limits imports, balances imports with
exports and compels importers to make or increase investments in
production facilities in the Latin American country. It
frequently raises the local content of goods manufactured
domestically, requires importers to keep revenue in Argentina
and imposes price controls on imported goods.

“Argentina’s trade policy has become rooted in unfair
trade practices,” EU Trade Commissioner Karel De Gucht said on
May 25, when the bloc filed its challenge. “These restrictive
measures by Argentina are illegal under WTO rules. They harm our
exports, they hurt our exporters and they cost us jobs.”

The challenge underscored the 27-nation bloc’s anger over
Argentina’s takeover of a unit of Spanish oil company Repsol SA
in April. The seizure, which couldn’t be challenged under WTO
rules, is “an expression of the same worrying policy pursued by
Argentina” in limiting imports, the EU said in May.

Fair Access

“Argentina’s persistent use of import restrictions broadly
impacts all U.S. exporters of goods to Argentina,” U.S. Trade
Representative Ron Kirk said on Dec. 7 when announcing plans to
seek a dispute panel following an Aug. 21 complaint. “It is
vital that our exporters obtain fair and equal access to foreign
markets, as required by our trade agreements.”

Argentina responded to the complaints by challenging U.S.
restrictions on Argentine meat and lemons and Spanish curbs on
imported biofuels. The WTO agreed today to Argentina’s request
for a panel of judges to be appointed to probe its complaint
against the U.S.

On Dec. 12, Panama lodged a complaint against Argentina,
the eighth against the Latin American nation since May. While
the other complaints focus on measures affecting imports of
products, Panama accused Argentina of discriminating on both
goods and services trade through taxes, company registration
rules and curbs on financial-services providers, among others.

Mexico also challenged Argentina’s import curbs, though it
withdrew its planned request for WTO judges to rule on its
complaint.